Prepare a customer-deposit review before closing

Topic
Customers, stock and orders
Reading time
3 minutes
Last reviewed
On this page
  1. Build a payment-to-commitment record
  2. Reconcile without deciding the remedy
  3. Check the business circumstances before promises

Match every identified customer deposit or advance payment to the goods or work it relates to before discussing its closure outcome. Establish the amount supported by the records, what has been provided and what remains unresolved. Do not promise a refund or completion date from an unmatched balance alone.

The purpose is to prepare a reliable review for the authorised finance and commercial contacts and their advisers. It does not rank creditors, determine entitlement or assume the business has funds available for any particular payment.

Build a payment-to-commitment record

Use the actual payment and order references. Keep sensitive financial and customer information within the business’s controlled records.

Field Evidence or question
Customer and work Correct party, order or service reference and agreed scope
Money received Amount, date and matching payment evidence
Money already returned or applied Actual recorded treatment and its supporting evidence
Fulfilment position Goods or services provided and remaining work
Difference Unmatched amount, conflicting record or disputed position
Decision needed Appropriate advice, customer discussion and named responsible person

Avoid treating an unexplained amount as spare cash, completed revenue or an agreed refund. Let the responsible finance person determine the appropriate accounting treatment and the adviser address disputed rights.

Reconcile without deciding the remedy

In a fictional example, a customer payment record shows £600 received and a separately evidenced £100 returned. The arithmetic remainder is £500. That calculation does not establish that £500 is currently refundable or owed in any particular way. The order, work done, agreement and business circumstances still need review.

Use the order status comparison if the underlying commitment is unclear. A payment reference that names an old quote may need a conversation with the people who handled the later work.

The part-completed order review helps compare the operational options once the relevant facts are established. Keep customer consent and adviser questions explicit rather than choosing an outcome to simplify the closure spreadsheet.

Check the business circumstances before promises

GOV.UK’s company-closure overview distinguishes circumstances according to whether the company can pay its bills. If the financial position or authority is uncertain, obtain appropriate qualified advice before making commitments about payments or asset disposal. Do not use this operational register to choose an insolvency or company-closure route.

For prepaid sessions or continuing services, the service balance review adds the remaining delivery position. Keep those units separate from money values unless the responsible people confirm the relevant basis.

Tell UK Auction Group which goods or resources remain subject to unresolved customer commitments. Share only the confirmed disposal authority and availability needed for the enquiry; the detailed customer-payment review belongs with the business and its appropriate advisers.

Customers, stock and orders

Sources

This guide is general information and education only. Legal, tax, employment and safety decisions may need a qualified adviser who knows your situation. Read the disclaimer.

Closing a business with assets to sell?

UK Auction Group values everything on site, runs the sale and hands the premises back clear, with a full statement of proceeds at the end.

Send a list of what you have, where it is and your deadline. Decisions that are still open can be included.

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Business Closure Guide is part of the UK Auction Group portfolio.

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